Verizon Communications Inc. is one of the world’s largest providers of communication services. The following information, taken from the company’s annual reports, is available for the years 2003, 2002, and 2001.

Required:

a. Divide the class into groups of four or five students. Organize the groups into three sections. As¬ sign each section of groups the financial data for one of the preceding accounting periods.
Group Tasks (1) Determine the amount of net income for the year assigned.
(2) How does the result in item 1 above affect the retained earnings of the company?
(3) Compute the percentage growth rate in net income for each year.
(4) Have representatives from each section put the income statement for their respective year on the board.

b. Have the class discuss the trend in revenue and net income.

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2003 2002 2001 Revenue $67,752 $67,304 $66,713 Operating Expenses 60,258 52,300 55,240 All dollar amounts are shown in millions. Net income for 2000 was $16,758.